Ship owners building new ships are supported after investment.

The Prime Minister has just signed Decision 47/2016/QD-TTg regulating the pilot mechanism of one-time post-investment support for shipowners building new ships according to the provisions of Decree No. 89/2015/ND-CP dated October 7, 2015 of the Government amending and supplementing a number of articles of Decree No. 67/2014/ND-CP dated July 7, 2014 of the Government on a number of fisheries development policies.

According to the Decision, the subjects receiving post-investment support are organizations and individuals (ship owners) who order new construction and own offshore fishing vessels and offshore fishing logistics service vessels with a total main engine capacity of 800 CV or more.

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Duc Tam 01 ship in Nghe An was newly built under the loan scheme of Decree 67. Photo courtesy

Support conditions

The above ship owners are entitled to post-investment support must meet the following conditions:

1- The ship owner is operating an effective fishing business, has financial capacity and a specific production plan, approved by the People's Committee of the province or centrally run city.

2- The ship owner is a member of a team, cooperative, or seafood exploitation enterprise.

3- Ships must be equipped with communication equipment capable of positioning and connecting to shore stations to manage and monitor the journey.

4- Offshore fishing vessels must have a certificate of technical safety for fishing vessels, a certificate of registration for fishing vessels and a fishing license issued by a competent authority. The fishing profession must comply with the provisions of Decision No. 1445/QD-TTg dated August 16, 2013 of the Prime Minister on approving the master plan for fisheries development until 2020, with a vision to 2030; accordingly, developing offshore purse seine, offshore line fishing combined with squid fishing, ocean tuna fishing, except for trawling, fixed fishing, net fishing, net fishing and some coastal gillnet fishing.

5- Offshore fishing logistics service vessels must have a fishing vessel technical safety certificate and a fishing vessel registration certificate; regularly register offshore fishing logistics service activities with the state fisheries management agency in the locality of registration or residence and must not engage in fishing.

6- Ship owners must sign new shipbuilding contracts from November 25, 2015 (the effective date of Decree No. 89/2015/ND-CP) to December 31, 2016. In case ship owners sign shipbuilding contracts before November 25, 2015 or after December 31, 2016, they will not be entitled to post-investment support.

Principles of post-investment support

The State only provides post-investment support for newly built and completed offshore fishing vessels with steel hulls, new material hulls, wooden hulls, and steel-hulled logistics service vessels.

Newly built fishing vessels must use new engines. Regarding machinery and equipment including: Marine machinery and equipment; equipment for exploitation; fishing gear; seafood preservation equipment; machinery and equipment for preserving goods; cargo handling equipment, ship owners are only entitled to support for newly purchased machinery and equipment and are not entitled to support for used machinery and equipment.

In case there are many policies to support new shipbuilding, newly built ships that have enjoyed the State's policy to support new shipbuilding will not be entitled to post-investment support according to the provisions of this Decision.

Support level for new shipbuilding

Decision on regulations for the construction of new offshore fishing logistics service vessels, including marine machinery and equipment; seafood preservation machinery and equipment; cargo preservation machinery and equipment; cargo loading and unloading equipment: a- In case of building new steel-hulled vessels with a total main engine capacity from 800CV to under 1,000CV: Ship owners are supported with 35% of the total investment value for new construction but not exceeding 8 billion VND/ship. b- In case of building new steel-hulled vessels with a total main engine capacity from 1,000CV or more: Ship owners are supported with 35% of the total investment value for new construction but not exceeding 9.8 billion VND/ship.

For the construction of new offshore fishing vessels, including machinery, marine equipment; equipment for exploitation; fishing gear; seafood preservation equipment: a- In case of building new steel-hulled fishing vessels with a total main engine capacity from 800CV to under 1,000CV: Ship owners are supported with 35% of the total investment value for building new fishing vessels but not exceeding 6.7 billion VND/fishing vessel; - b In case of building new steel-hulled fishing vessels with a total main engine capacity from 1,000CV or more: Ship owners are supported with 35% of the total investment value for building new fishing vessels but not exceeding 8 billion VND/fishing vessel; c- In case of building new composite-hulled fishing vessels with a total main engine capacity from 800CV or more: Ship owners are supported with 35% of the total investment value for building new fishing vessels but not exceeding 6.7 billion VND/fishing vessel; d- In case of building new wooden fishing boats with total main engine capacity of 800CV or more: Ship owners are supported with 15% of the total investment value of building new fishing boats but not exceeding 2 billion VND/fishing boat.

According to Phuong Nhi/chinhphu.vn